Reits should be careful with trust schemes of arrangement

Singapore

REAL estate investment trusts (Reits) in Singapore may have to be more careful when they undertake a trust scheme of arrangement in future as such schemes will likely draw more scrutiny, say corporate lawyers.

This follows the recent privatisation of Soilbuild Business Space Reit (Soilbuild Reit) in March, where the Singapore High Court had raised concerns over the use of the one-proxy rule and the legal basis for a Reit trust scheme to be carried out.